Wednesday 01, August 2018 by Jessica Combes

ADNIC net profit up 17.1 per cent for H1 2018

 

Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers for corporates and individuals, announced its financial results for the first half of 2018 today. 

ADNIC reported a net profit of AED 150.5 million for the period, up 17.1 per cent year-on-year.   

“On behalf of the Board of Directors, I am pleased to report that ADNIC has delivered strong performance in the first half of 2018, reflecting solid growth throughout the second quarter as we continued to make good progress towards achieving our strategic objectives. ADNIC’s customers are at the heart of our strategy, and as we move into the second half of the year, we remain fully committed to delivering value for both our clients and shareholders, and to driving the sustainable growth of our business,” said Shaikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC. 

Key Financial Highlights

  • For the six-month period ended 30 June 2018, ADNIC’s gross written premiums increased by 14.7 per cent to AED 1.81 billion, compared to AED 1.58 billion for the same period in 2017.
  • The overall premium retention ratio reached 53.2 per cent for the six-month period ended 30 June 2018, compared to 43.7 per cent for the same period in 2017. 
  • For the six-month period ended 30 June 2018, ADNIC’s net underwriting profit increased by 20.1 per cent to AED 193.1 million, against AED 160.8 million for the same period in 2017.  
  • General and administrative expenses for the six-month period ended 30 June 2018 stood at AED 112.3 million, compared to AED 94.5 million for the same period in 2017. 
  • Net technical profit for the six-month period ended 30 June 2018 increased by 21.3 per cent to AED 83.6 million, against AED 68.9 million for the same period in 2017.  
  • ADNIC’s net investment and other income increased by 12.1 per cent to AED 69.7 million for the six-month period ended 30 June 2018, compared to AED 62.2 million for the same period in 2017.
  • For the six-month period ended 30 June 2018, net profit increased by 17.1 per cent to AED 150.5 million, compared to AED 128.5 million for the same period in 2017.
  • ADNIC’s cash balances increased by 8.4 per cent to AED 764.9 million as at 30 June 2018, compared to AED 705.4 million as at 31 December 2017.
  • Total investments including cash in time deposits, bank accounts and investment properties increased by 3.3 per cent to AED 3.50 billion as at 30 June 2018, compared to AED 3.39 billion as at 31 December 2017.
  • Total assets increased by 11.5 per cent to AED 7.47 billion as at 30 June 2018, compared to AED 6.70 billion as at 31 December 2017.
  • Gross technical reserves increased by 12.9 per cent to AED 4.38 billion as at 30 June 2018, compared to AED 3.88 billion as at 31 December 2017.
  • Shareholders’ equity increased by 2.5 per cent to AED 2.03 billion as at 30 June 2018, compared to AED 1.98 billion as at 31 December 2017.
  • Basic and diluted earnings per share increased by 17.4 per cent to AED 0.27, compared to AED 0.23 for the same period last year.

“I’m pleased to report that ADNIC delivered strong growth in both net profit and gross written premiums for the first half of 2018. This performance is a testament to our sound underwriting strategy, financial strength and market-leading position. Moving to the remainder of the year, we are looking forward to continuing to leverage our innovative capabilities to meet the ever-growing needs of our clients and to achieve sound return to our shareholders,” said Ahmad Idris, CEO of ADNIC.

Features & Analyses

Economics Adapting to a new era

  Abdullah Al-Fozan, Chairman of KPMG MESA and KPMG Saudi Arabia, provides an exclusive commentary on the Kingdom’s business… read more